Partial Cover

Partial Coverage: Reduced Protection for High-Risk Threats

If a project begins exhibiting clear signs of elevated risk, its coverage will be downgraded from full to partial. This ensures that the insurance pool remains solvent while still offering some protection to users who choose to hold riskier assets.

Partial coverage means payouts will be capped at a percentage (70%) of the insured value, depending on the severity of the threat, in the case we do not remove the project totally from insurance.

Users who insured on the project while a 'FULL COVER' was in place will keep their Full Cover status and the change will only affect new policy takers.

---

Proactive Monitoring & Real-Time Adjustments

Our risk engine continuously evaluates projects using:

• Automated on-chain surveillance (liquidity health, transaction anomalies).

• Audit status tracking (changes in security posture).

• Sentiment analysis (sudden spikes in negative discussions).

• Team & governance transparency (unexpected team changes or malicious proposals).

If a project recovers—e.g., fixes vulnerabilities, restores liquidity, or regains community trust—its coverage can be upgraded back to full. This flexible system ensures fairness while protecting the insurance pool from unsustainable claims.

By starting with full coverage and only downgrading when clear threats emerge, we strike a balance between user protection, risk management, and DeFi innovation.